Thanks for letting us know about this. If you haven't already, please feel free to get in touch with our team at wecare@coinsetter.com to see if additional options may fit your particular situation.

Best,
Jaron

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Hey guys, thanks for posting and for the support.

I think MPEx has bigger plans in the space than what they're showing from their front end!

Hey Sage, I may have some information on this (I am its Co-Founder). The wait isn't quite over, but we are going to be making an announcement soon that I believe will make the wait worth your while. More to come, and thanks for your patience as we try to open up to the public as soon as possible.

Jaron

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Hey dirksizzlebod, just so I'm clear, the purpose of our platform is to trade bitcoin (BTCUSD followed by other bitcoin-related currency pairs), not traditional forex currencies as you would on Interactive Brokers. You're right in noting that our platform is primarily targeted towards active traders. However, as a long term investor, the benefits to using Coinsetter over another exchange are a better (more enjoyable-to-use) interface and higher security standards. Exchange pricing should be about the same, and you'll have access to more orderbooks with us (i.e. access to the best market prices). We also plan on insuring our exchange against hacks, which is a protection no other exchange offers.

That's actually a pretty good point. I think what will actually happen is a little more complex and harder to pin down though than just saying an inflation-led housing bubble will cause all housing prices to collapse. I could see that happening for a certain time period (which would be painful and could potentially last years), but in the long run I believe housing prices will increase nominally to reflect their intrinsic asset value. So a super-inflated currency like the US could have in the future would still be a net benefit for people who took out cheap loans and bought decently-priced assets with them (which I believe homes in most areas still are). Many people wouldn't be able to pay off their mortgages in that situation either, so it additionally would only benefit those who can actually hold onto their assets during the downturn.

I did like your point, though, about the future when interest rates rise. If that happens, bitcoin loans could actually become pretty attractive.

No worries, I'm just glad we're on the same page and will be offering what you wanted. I'd hate to be a bitcoin company that didn't accept bitcoin transfers!

Hey 001sonkit, I can see you are understandably leery of a group starting a bitcoin trading platform. We definitely want to work with our users and the community to demonstrate that we are capable of handling the big responsibility of operating the levered trading platform we are building, which will become an important part of the bitcoin ecosystem. However, I feel that the attitude in your post is more along the lines of "accuse first, never admit a job well done," which I don't feel is very productive. Instead, maybe you could give me realistic ways to help demonstrate that we are the right company for this task. Also, many of the subjects you've brought up I have already answered in some of my other responses, but I'm going to go ahead and reanswer them here.

First of all, as I mentioned early on, we have used absolutely no source code from Bitcoinica. Zero. This is an especially personal point for me, given the tens of thousands of dollars I am spending personally right now to build our platform from scratch, building it the right way with a big focus on quality and security, instead of taking the easy path of just building off of Bitcoinica's source code. The hackers that know their source code inside and out will quickly tell you that ours is unrelated once we launch.

Second, you ask if there is any more catch for our service. However, we have received a large and growing number of emails from active traders who are excited to move their trades over to our platform if we deliver on what we are promising. It appears that you don't see the value in a margin trading platform that offers the ability to lever your trades, short the market, use a stellar API and trade on a user-friendly interface.

On the note of security, we will have an independent security audit conducted on our platform to review our code and validate its security after our seed capital raise. Until then, we are working hard to simply build a very secure platform that we personally have confidence in. As I mentioned before, I will personally be providing the first portion of capital used for leverage from my own savings that I earned through working in investment banking and private equity, so I would personally lose a substantial amount of money if we are hacked. Also, as long as premiums stay in the affordable range we have been quoted, we plan on taking out insurance in the case of hacks. So we will be paying thousands of dollars a year on that as well, and not passing the cost along to our customers.

The whole identity topic shows that you probably didn't read my first post in this thread at all. I provided my background, as well as a link to my LinkedIn profile. You'll notice that I have a history of strong roles with reputable financial companies. While this isn't everything, it should at least hint that I work hard and am a credible person.

I could speculate on what will happen to the regulatory environment regarding bitcoin but will not. We're working hard to run our company the right way and prevent money laundering on our platform and exchange.

Let's stop using the word "catch". Coinsetter doesn't have a catch. We're building the best platform we can, and we believe it's a great one. We are also taking multiple steps to give people comfort in using our platform and provide them protections that no other company has even thought of (has any other company even mentioned spending money on insurance and security audits?) It doesn't have to happen immediately, but over time I believe we are the platform people will trust and prefer to use over any other.

Hey runeks, I'm not quite sure I follow your question – could you clarify it a bit for me? It seemed that you were suggesting we offer cost-free bitcoin transfers to fund an account, which we will be doing.

If you believe that the US government will keep inflating the dollar, wouldn't it be better to take out a 3% loan in USD? The asset value of your property will inflate substantially versus the principal on your loan over time. Another problem is that people receive their income in dollars (or the currency of whichever country you live in). If you're willing to assume Keynsian economics don't hold with regard to inflation (shouldn't be a hard argument to make in this community and there's a lot of data to support this, especially in the short term), it would probably be hard to keep up with your bitcoin loan payments because it would take increasingly more dollars to pay off your monthly mortgage while your income doesn't compensate for it. I also believe that bitcoin loans will have a pretty high interest rate for the foreseeable future.

As a general rule, you want your debt to be denominated in the same currency as your income. In the long run, I agree that this is probably a needed industry as the bitcoin economy grows.

If this becomes feasible, I would definitely contribute to a crowdfunding campaign towards it.

Ok thanks. Is the thought that you would rather not link an account on our site, and could just initiate a transfer from your own bank account?

Yes, we will be offering ACH transfers, and my goal is to make that extremely user-friendly. Note, though, that we will only accept bitcoin transfers while we're in beta (and will be implementing development of transfer methods in the meantime).

On that line of thought, what cash transfer methods would people like to see us offer?

Hey Davout, these are important questions. We're still in the process of figuring that out ourselves. The first question I don't think we be answered for a few years. On the second question, I believe there are other regulatory bodies besides the SEC that we'd more likely be tied to. When you look at traditional forex brokers, they are governed by the NFA and the CFTC. However, that doesn't necessarily mean they are applicable to us. We're currently discussing this issue with our legal advisors.

I was based out of Houston. Chicago's a great city, love Giordano's.

Runeks, thanks for your support.

Hey gweedo, we're unfortunately not going to be the trading platform for people who want to trade anonymously. While it's our goal to keep user information as confidential as possible, we will comply with all United States AML practices and uphold KYC standards. Users will need to provide a lot of information (similar to opening a forex or brokerage account), and we'll have to restrict users from certain countries. These provisions will allow us to operate legally in the US, and more importantly to our users, maintain strong relationships with our banks.

ColdHardMetal, eventually we would like to offer additional currency pairs, commodities and options that are highly demanded by our users. For the time being, though, we're just focused on getting BTCUSD right and then quickly adding a few other popular BTC-related currency pairs. Our goal at our launch is to do a small number of things extremely well.

RyNinDaCleM, we plan on offering the option to have your account balances earn interest by being lent out to other users. Sort of like how your bank has a checking and savings account, you would have a trading and savings account on Coinsetter. It will be structured in a way where there is never a situation where someone can't immediately access their funds, even in unlikely events such as a market crash. With that said, my complete focus is solely on using our own capital and bank loans for Coinsetter's leverage until we have that system built out.

The Fool, we will definitely allow fractional quantities to be traded. Whether or not we will have a minimum trade size is still being decided, so I'll have to get back to you on that.

MJGrae, good luck on your investment banking path. Where are you located?

Yeah I totally understand. The leverage we offer on our platform will be provided internally, first through our own personal capital, and second through a line of credit we will have with our lenders. I think this is important because it aligns our incentives with customers in many ways, especially in regards to how we would be impacted by security breaches (we would personally lose more money than our customers would). That's one way I hope to build confidence in our platform: by putting our own money where our mouth is.

At launch, we expect our lending base to be relatively small (somewhere in the $20,000 to $50,000 range). As we grow, it will be a central focus of our company to continuously expand the amount of capital we can offer as leverage to users. One important aspect of our platform I would like to make everyone aware of is that trades on our site are limited to a holding period of one week. We intend to extend this holding period as we go on, but with limited capital at hand, we want the loans we offer to be used by active traders as opposed to being stored up by long term investors. Not that I have anything against the buy and hold strategy, but our platform is targeted toward active traders and everyone will benefit if we serve them well. On the positive side, we will not charge interest on trades held less than 24 hours.

Hey Hazek, the source itself will remain closed. However, we don't mind releasing some of the pseudo-logic of the order process after we've made sure we have filed all the IP protection rights we're within legal rights to own and have passed all security audits (which we will complete both internally and through a third party after our seed capital raise) to ensure we're not opening ourselves to exploits. We will do a detailed write-up of many of the implemented and to-be implemented security measures we take to protect our users.